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On 25 April
2000 leaders of most African Countries signed the
Abuja Declaration
on Malaria that included promises to eliminate all taxes and tariffs
regarding the goods that contribute to malaria control. The goods
related to malaria control are primarily mosquito netting and
insecticides.
OVER TWO YEARS
LATER, OVER HALF THE COUNTRIES SIGNING THE
ABUJA DECLARATION STILL
HAVE TAXES AND TARIFFS.
The ironies of
tariffs and taxes are several.
- Aid groups
get the goods into the country without paying tariffs and
taxes anyway.
- The tax
revenues raised from the goods is virtually non-existent. When
the FINANCE ministers look at the policies, the tariffs get
lifted.
- Controlling
malaria increases economic activity. Letting nets and
insecticides into the country will increase the economy and hence
increase
tax revenues. Hence, taxes and tariffs LOWER tax revenues. T & T
have
precisely OPPOSITE the effect that they are intended to have.
The simple
fact of the matter is that the finance ministers do not know the
financial impact of malaria control. For every single dollar spent
on malaria control an estimated 50 dollars is added to the economy.
It would sense to drop taxes and tariffs on malaria control items in
order to boost the economy. This boost in economy would add to the
taxes raised by the country and yield a much greater earning than by
taxing the malaria control items. |
